⚡️Microsoft hits US$3 trillion valuation

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Magnificent Microsoft: Microsoft hit a historic USD3 trillion ($4.55 trillion) market valuation during trading Wednesday, rising as much as 1.3% to USD403.95 per share as AI optimism continues to fuel the software behemoth’s growth. The so-called ‘Magnificent 7’ leading tech stocks have pushed the US market to record highs this month, with the seven tech giants outperforming the S&P 500 by over 2 percentage points, returning 4.4%. (Bloomberg)(Wall Street Journal)

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Tax cut backflip: Prime Minister Anthony Albanese will today seize on Treasury advice and argue inflation and the cost-of-living crisis made it necessary to overhaul the Stage 3 tax cuts. A draft of the speech that Albanese will deliver to the National Press Club outlines his reasoning for breaking his election promise not to change the tax cuts, which had been legislated by the former Morrison government. Albanese will say: “Some would say that we should stay the course, even if it means going to the wrong destination […] We are doing the right thing, for the right reasons.” (Capital Brief)

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Lending boost: China’s central bank will cut banks’ reserve requirements to boost their lending to households and businesses as it takes steps to prop up growth after a weak 2023. The move follows reports that Chinese policymakers are considering a $430 billion stock market rescue package aimed at stemming a selloff that has threatened equity benchmarks and cast doubt over Beijing’s policy roadmap. (Wall Street Journal)

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Exchange stake: Bill Ackman and wife Neri Oxman bought a 4.9% stake in the Tel Aviv bourse for USD25 million, as part of a wider stake sale worth USD95 million. The acquisition is the latest show of support for Israel by the hedge fund founder and billionaire, who is renowned for his activist campaigns. Ackman has been vocal about the country's war with Hamas since it broke out last October, campaigning against antisemitism at a suite of Ivy League universities. His calls for several university presidents to resign have had mixed success. (Financial Times)

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Cheaper EVs: Tesla has told suppliers it plans to start producing a new mass market electric vehicle codenamed “Redwood,” which is described as a compact crossover. Reuters reported the news citing unnamed sources, stating that the carmaker sent requests for quotes to suppliers last year and is forecasting weekly production of 10,000 vehicles. Tesla was overtaken by China’s BYD as the world’s top-selling EV maker in Q4 last year, and the Redwood plans could signal that Elon Musk is looking to make good on his 2020 promise to build a USD25,000 EV. (Reuters)

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Euro tech: Bumper performance from SAP and chip maker ASML have led a European rally, boosting investor sentiment and pushing the euro area's tech sector up almost 5% on Wednesday. ASML’s order bookings more than tripled in Q4 2023, while SAP’s cloud order backlog also grew during the same period. SAP also announced it will cut 8,000 jobs as it restructures to increase its focus on AI. Meanwhile, Goldman Sachs has warned that a Trump victory in this year’s US election could heighten risks across large segments of Europe’s stock market. (Bloomberg)(Bloomberg)(Reuters)

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Russia-Ukraine war: A Russian military transport jet carrying Ukrainian prisoners of war crashed Tuesday evening, killing all 74 people on board. 65 of the passengers were Ukrainian prisoners of war who were being transported from Moscow to the Russian province of Belgorod for a planned prisoner exchange. Russia’s Defence Ministry has accused Ukrainian forces of shooting down the aircraft, although it is yet to provide any evidence to substantiate the claim. (Associated Press)

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Fee restructure: Apple is planning to add new fees and restrictions once it starts allowing iPhone users to download apps outside of the App Store, according to the Wall Street Journal. The plan is a response to new European rules that force the tech giant to allow users to circumvent the App Store, reducing Apple’s control over third-party software. On the back of the European antitrust decisions, Apple also recently sought clarification from the Australian government as to when the RBA will deploy new powers to create rules on bank access to its tap-and-go mobile payments system. (Wall Street Journal)(AFR)

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